ClearView Wealth says its life business performed strongly, enabling the listed financial services group to achieve a 31% rise in first-half underlying net profit after tax to $16.3 million.

The life division, the group’s key profit driver, increased its underlying net profit by 46% to $19.4 million from a year earlier. New business went up 9% to $11.3 million and gross premium income grew 8% to $160 million.

In contrast the wealth management division lost about $1million in the December half. ClearView Wealth, which undertook a review of the division last year, says it has entered an agreement to sell its managed investment business to Human Financial, an investment management and technology company.

The sale represents a two-part reorganisation of the wealth management business. Under the sale agreement, ClearView will receive a cash consideration of $1.3 million and will also acquire a strategic 40% interest in Human Financial. The transaction is subject to certain condition approvals.

MD Simon Swanson says the actions “will expand our capacity to serve our customers and financial advisers, and sharpen our focus on lifting life insurance market share and profitability”.

ClearView Wealth says in light of the December half results, it has raised its underlying net profit after tax guidance for this financial year to $30-32 million from $28.5-30 million previously.

Mr Swanson also touched on the Quality of Advice Review (QAR) final report’s recommendations, which backed the retention of the commission model and other changes to the way advice is provided.

“We are supportive of any reforms that make good advice accessible and affordable to more Australians,” he said.

“Key recommendations in the QAR final report, if implemented, will go a long way to achieving that goal by removing unnecessary complexity in the system and reducing the compliance burden on advice businesses.

“Importantly, the commission model is an important funding mechanism that helps keep the upfront cost of purchasing life insurance down. It gives consumers the choice over how they pay for life insurance advice, be that fees, commissions or a combination of both.”